Canada new housing prices increase by 0.1 percent in October

OTTAWA (Reuters) - (In last paragraph of Dec 11 story, the story was refiled to correct the proportion of housing not covered by the index to one-third from two-thirds.)

A condominium building is seen under construction in Toronto, March 10, 2014. REUTERS/Aaron Harris

New housing prices in Canada rose 0.1 percent in October from September, the third consecutive month-on-month increase, on strength in the Vancouver metropolitan area, Statistics Canada said on Thursday.

The result matched analysts’ expectations. Prices in the Vancouver area grew by 0.4 percent, the largest jump since an identical increase in April 2010, on higher material costs and good market conditions.

Vancouver accounts for almost 12 percent of the overall market. Prices in the combined region of Toronto and Oshawa, which represent a 28 percent slice, increased by 0.1 percent.

Month on month, prices were up in eight of the 21 major metropolitan regions, down in three and unchanged in 10. The new housing price index rose by 1.6 percent compared with October 2013.

The new housing price index excludes apartments and condominiums, which the government says are a particular cause for concern and account for one-third of new housing.